A poor second quarter

’s engineering and manufacturing sectors suffered their weakest performance in two years during the second quarter of this year according to one of the

’s leading business surveys.

Publishing its second quarter engineering outlook survey in conjunction with RSM Robson Rhodes, EEF - the manufacturers’ organization - believes that despite some sectors continuing to see growth, falling consumer spending and slow growth in the eurozone is now resulting in poorer prospects. As a result, confidence levels of manufacturers are now beginning to fall away.

EEF responded by significantly reducing its growth forecasts for engineering and manufacturing to 1.1% and 0.5%, down from 2.6% and 1.4% respectively. Whilst stopping short of an immediate call for a cut in interest rates EEF urged the Bank of England to stand ready to act if the economy overall continues to weaken over the summer.

"Manufacturers could only escape the double impact of a reluctant consumer and a poor eurozone for so long and we are now beginning to see the effects,” said EEF Chief Economist, Steve Radley. “Despite a positive picture in some industries, there has been a change in sentiment across the economy which will need addressing if growth begins to stutter."